University Times

Pitt and Carnegie Mellon University announced plans last week to form a new non-profit corporation – Innovation Works, Inc. – that is expected to:

* Provide start-up funding grants averaging more than $300,000 to help with research and development, marketing and other business support services.

* Assist firms in finding venture capital, recruiting workers and doing market analyses.

* Create a network of in-house analysts and "entrepreneurs in residence"to help firms survive early problems.

Innovation Works hopes to create 8,000 new jobs in knowledge-based and technology-oriented startup companies over the next five years.

The new corporation will do the work once provided by the Ben Franklin Technology Center and The Enterprise Corp., two Hazelwood-based, non-profit organizations. It will administer the Ben Franklin Challenge Grant program.

Innovation Works will need $8 million in annual support, of which $6 million will aid growing companies and $2 million will support management assistance and market development.

The state is expected to contribute $6 million previously provided to the Ben Franklin center. Pitt and Carnegie Mellon together have contributed a one-time award of $500,000. Foundations will be asked to provide most of the remaining funding.